Significant audit issues faced by national standard-setting bodies and the IAASB:

1. Climate change reporting: Growing emphasis on sustainability and environmental issues has increased the need for auditing the accuracy and completeness of climate change disclosures in financial statements.
2. Fraud detection: Enhanced audit standards are being developed to strengthen auditors’ ability to detect and report fraudulent activities, especially in light of technological advancements and complex financial environments.
3. Cybersecurity risks: As businesses rely heavily on technology, assessing a company’s cybersecurity controls has become crucial to audit procedures to mitigate risks of cyberattacks.
4. Going concern assessments: In the context of the COVID-19 pandemic, companies face financial difficulties, making it essential for auditors to assess the ability of companies to continue as a going concern.
5. Non-financial reporting: Increased demand for disclosures of non-financial information, such as social and environmental impacts, requires new audit standards to ensure the completeness and reliability of such information.